Understanding UPS and FedEx Accessorial Charges

Here we will summarize what an accessorial charge is and some common ones you might see

Shipping carriers like UPS and FedEx provide a wide range of services to cater to the needs of businesses and individuals in the global logistics market. While their basic shipping rates cover standard delivery options, there are additional charges, known as accessorial charges, that apply in specific situations or for extra services. This knowledge base article aims to explain what UPS and FedEx accessorial charges are and shed light on some common types of accessorial charges imposed by these carriers.

What are Accessorial Charges?

Accessorial charges refer to the additional fees or surcharges that shipping carriers apply to shipments under specific circumstances or when extra services are required. These charges are not part of the standard shipping rates and are billed separately to cover the additional costs associated with handling particular shipping situations.

UPS Accessorial Charges:

UPS accessorial charges can vary depending on the service level, package characteristics, and delivery requirements. Some common UPS accessorial charges include:

1. Address Correction: Applied when the recipient's address provided on the shipping label is incomplete, incorrect, or requires modification to ensure successful delivery.

2. Residential Delivery: UPS applies this charge when delivering packages to residential addresses instead of commercial addresses, as residential deliveries typically require additional resources.

3. Over Maximum Limits: If a package exceeds the maximum weight or size limit for the chosen service, UPS will impose an additional charge.

4. Delivery Area Surcharge: This fee is added to deliveries made to remote or less accessible areas, where additional effort or resources are needed for successful delivery.

5. Additional Handling: UPS applies this charge to packages that are non-standard in size, shape, or weight, requiring extra handling during transit.

6. Dangerous Goods: For shipments containing hazardous materials or dangerous goods, UPS imposes a surcharge to cover the specialized handling and safety requirements.

FedEx Accessorial Charges:

Similar to UPS, FedEx also has accessorial charges for specific services or exceptional shipping circumstances. Common FedEx accessorial charges include:

1. Address Correction: FedEx imposes this charge if the recipient's address is incorrect or requires modification for successful delivery.

2. Residential Delivery: Additional fee applied to packages delivered to residential addresses to account for extra time and resources.

3. Oversize/Overweight: When a package exceeds the size or weight limitations, FedEx applies this surcharge.

4. Delivery Area Surcharge: FedEx imposes this charge for deliveries made to remote or less accessible areas.

5. Signature Options: Additional fees are applied for specific signature requirements, such as Adult Signature or Direct Signature.

6. Hazardous Materials: If a shipment contains hazardous materials, FedEx will add an accessorial charge for specialized handling and safety precautions.

Conclusion:

UPS and FedEx accessorial charges are additional fees that shipping carriers apply to cover extra services or specific shipping scenarios. Understanding these charges is essential for businesses and individuals to accurately calculate shipping costs and make informed decisions when choosing shipping options. By being aware of common accessorial charges, shippers can optimize their shipping processes and ensure the successful delivery of their packages.